Canada, the United State’s neighbor to the north is very different in several ways that the U.S. Some of these differences come in the way of health care and other differences revolve around business in Canada. Let’s take a look at what the Canadian economy is like and what other factors influence business in Canada.
Canada is a federal state that is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It is a bilingual nation with both English and French as official languages at the federal level. One of the world’s most highly-developed countries, Canada has a diversified economy that is reliant upon its abundant natural resources and upon trade particularly with the United States. With the sixth-highest Human Development Index globally, Canada has one of the highest standards of living in the world.
Canada is one of the world’s wealthiest nations, with a 2011 nominal GDP of approximately US$1.75 trillion, and a very high per-capita income measured at $51,147, as reported by the IMF. Canada is a mixed economy, ranking above the US and most western European nations on the Heritage Foundation’s index of economic freedom. Canada is one of the few developed nations that are net exporters of energy, according to Charles Brown in his book World Energy Resources. Canada is additionally one of the world’s largest suppliers of agricultural products; the Canadian Prairies are one of the most important global producers of wheat, canola, and other grains. Canada is also the largest producer of zinc and uranium, and is a leading exporter of many other natural resources, such as gold, nickel, aluminum, and lead. Canada is unusual among developed countries in the importance of the primary sector, with the logging andoil industries being two of Canada’s most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry and aircraft industry especially important.
The 2011 Canadian census counted a total population of 33,476,688, an increase of around 5.9% over the 2006 figure. The Canadian population is forecast to increase continually on an annual basis due to high levels of immigration and moderate domestic birth rates. The US is Canada’s primary market for goods with the US economy consuming 79.4% of all Canadian exports in 2010. The Canadian economy can be broken down along the following sectors agriculture: 2.2%, industry: 26.3%, services: 71.5%. With education and health sectors as two of Canada’s largest service sectors, but both are largely under the purview of the government. The health care industry has been quickly growing, and is the third largest in Canada. Its rapid growth has led to problems for governments who must find money to fund it. While Canada’s main industries are transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas.
Overall, Canada is one of the best markets to do trade in. It is right next to the US, meaning that Canada can serve as a North American base for expanding into the US. Canada was ranked as the 13th easiest country to do business in for 2012, according to the World Bank’s annual survey. Some Canadian provinces have also eliminated certain taxes in order to stimulate investment. In Ontario the corporate capital tax was eliminated July 1, 2010, for Ontario corporations primarily engaged in manufacturing or resource activities. In British Columbia the corporate capital tax was eliminated as of April 1, 2010. In essence, the Canadian government tries to make the environment for business as easy as possible, which is why it is such a great country to do trade in.